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Carlyle Group increases BCE stranglehold on media
Bid To Take Over 'E&P' Parent, VNU, Appears Successful
By E&P Staff
Published: May 21, 2006 2:45 PM ET
AMSTERDAM A group of private investors said Sunday their euro 7.7 billion (U.S. $9.7 billion) bid for Dutch publishing company VNU NV, owner of Editor & Publisher, Billboard, Hollywood Reporter, Adweek and dozens of other leading magazines, has succeeded.
The investors, who operate under the name Valcon Acquisition BV, said that 78.7 percent of VNU's shareholders had tendered their shares to the offer price of euro 29.50 (U.S. $37.15) per share.
The group had targeted 80 percent of shares, but said Sunday it would waive that condition.
VNU shares closed at euro 29.37 on Friday. Valcon said in a statement it will now begin formal legal proceedings to "squeeze out" remaining shareholders, forcing them to sell their shares, and delist VNU.
An initial post-offer period where shareholders can tender shares at the offer price will begin Monday and last until June 9, the statement said.
VNU's fate has been uncertain since November, when Knight Vinke Asset Management and other mostly American institutional shareholders blocked VNU's U.S. $6.8 billion bid to buy IMS Health Inc. -- a show of strength unheard of in the Netherlands, where shareholders have no history of activism.
VNU Chief Executive Rob van den Bergh promised to resign after the IMS Health deal collapsed, but he continued to serve while the company sought a replacement and eventually entered talks with the buyout consortium.
Van den Bergh and VNU's board supported Valcon's initial bid in March.
On May 4, the bidders increased their offer, winning the support of at least one major shareholder, Templeton Global Advisors Ltd., whose clients held a 14.7 percent stake in VNU.
Knight Vinke threw in the towel Friday and said it would also tender its shares.
The consortium is comprised of AlpInvest Partners NV, The Blackstone Group LP, The Carlyle Group, Hellman & Friedman LLC, Kohlberg Kravis Roberts & Co. LP, and Thomas H. Lee Partners LP.
VNU, which has most of its business in the United States, does marketing research under the Nielsen brand name and publishes about four dozen magazines in America.
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Now here's what this means in real terms.....
"Editor & Publisher" - served as sort of a "watchdog" of the newspaper industry, including the growing right wing bias. Probably won't be doing that anymore.
The ownership of Nielsen and Billboard is potentially far worse. If only right wing TV shows get high ratings, and only Busheep propaganda music appears to be topping the charts, then more of that vile shit will be produced.
The BCE knows exactly what they're doing with this purchase, and it will lead to a much uglier world for all of us.......
By E&P Staff
Published: May 21, 2006 2:45 PM ET
AMSTERDAM A group of private investors said Sunday their euro 7.7 billion (U.S. $9.7 billion) bid for Dutch publishing company VNU NV, owner of Editor & Publisher, Billboard, Hollywood Reporter, Adweek and dozens of other leading magazines, has succeeded.
The investors, who operate under the name Valcon Acquisition BV, said that 78.7 percent of VNU's shareholders had tendered their shares to the offer price of euro 29.50 (U.S. $37.15) per share.
The group had targeted 80 percent of shares, but said Sunday it would waive that condition.
VNU shares closed at euro 29.37 on Friday. Valcon said in a statement it will now begin formal legal proceedings to "squeeze out" remaining shareholders, forcing them to sell their shares, and delist VNU.
An initial post-offer period where shareholders can tender shares at the offer price will begin Monday and last until June 9, the statement said.
VNU's fate has been uncertain since November, when Knight Vinke Asset Management and other mostly American institutional shareholders blocked VNU's U.S. $6.8 billion bid to buy IMS Health Inc. -- a show of strength unheard of in the Netherlands, where shareholders have no history of activism.
VNU Chief Executive Rob van den Bergh promised to resign after the IMS Health deal collapsed, but he continued to serve while the company sought a replacement and eventually entered talks with the buyout consortium.
Van den Bergh and VNU's board supported Valcon's initial bid in March.
On May 4, the bidders increased their offer, winning the support of at least one major shareholder, Templeton Global Advisors Ltd., whose clients held a 14.7 percent stake in VNU.
Knight Vinke threw in the towel Friday and said it would also tender its shares.
The consortium is comprised of AlpInvest Partners NV, The Blackstone Group LP, The Carlyle Group, Hellman & Friedman LLC, Kohlberg Kravis Roberts & Co. LP, and Thomas H. Lee Partners LP.
VNU, which has most of its business in the United States, does marketing research under the Nielsen brand name and publishes about four dozen magazines in America.
Link
Now here's what this means in real terms.....
"Editor & Publisher" - served as sort of a "watchdog" of the newspaper industry, including the growing right wing bias. Probably won't be doing that anymore.
The ownership of Nielsen and Billboard is potentially far worse. If only right wing TV shows get high ratings, and only Busheep propaganda music appears to be topping the charts, then more of that vile shit will be produced.
The BCE knows exactly what they're doing with this purchase, and it will lead to a much uglier world for all of us.......
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